Summary
updated as of April 6, 2010ATTENTION: A Motion was made before the Court on March 30, 2010. The motion materials can be found here. The order and endorsement dated March 30, 2010 can be found here and here.
Overview
On June 18, 2009, Fraser Papers Inc. (the "Company"), together with its subsidiaries, initiated a court-supervised restructuring under the Companies' Creditors Arrangement Act (Canada) (the "CCAA") in the Ontario Court of Justice. Fraser Papers also filed for protection pursuant to Chapter 15 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.
The Committee
The lawyers from Davies Ward Phillips & Vineberg LLP ("Davies") have been retained by the Fraser Papers' Committee for Salaried Employees and Retirees (the "CSER"), which currently includes representatives from the following groups: the employees and former employees from the Edmundston, Thurso, Plaster Rock and Juniper, Madawaska and Gorham operations. The current members of the CSER are:
• Don Corey (Human Resources Manager – Edmundston);
• Paul Gendreau (Human Resources Supervisor – Madawaska);
• Francine Clément (Human Resources and Administration Manager – Thurso);
• Greg Cyr (Human Resources Manager – Gorham);
• Robyn Wiley-Hoyt (Human Resources Superintendent – Juniper);
• Mark Fitzherbert (Human Resources Safety Superintendent – Plaster Rock);
• Mike Côté (Human Resources Superintendent – Ashland and Masardis);
• Richard Marston (Former Human Resources Manager – Madawaska);
• Bruce Parkin (Former Human Resources Manager – Edmundston);
• Ken Chappel (Former Operations Supervisor – Plaster Rock);
• Lorne Fraser (Retiree, Edmundston);
• Carl Cyr (Former Superintendent, Engineering and Process Control – Edmundston);
• Paul Des Rosiers (Former Vice President, Forestry and Energy Divisions – Masson, QC)
• Paul Schriver (Former Mill Manager – Atholville, NB); and
• Claude Lalonde (Retiree, Thurso).
The CSER and the groups they represent have retained Davies for legal advice and representation in relation to both the CCAA and U.S. bankruptcy proceedings.
Who Davies represents
On September 17, 2009 the Ontario Superior Court of Justice (Commercial List) (the "Court") granted a representation order appointing Davies as representative counsel for:
• all non-unionized employees;
• all former employees, except former employees who were members of the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (USW) and the Communications, Energy and Paperworkers Union of Canada (CEP); and
• all current and former members of the Office and Professional Employees International Union (OPEIU); and
• all beneficiaries of the employee benefit plans.
On October 22, 2009 the Court amended this representation order and appointed Davies as representative counsel for all current and former members of the Office and Professional Employees International Union (OPEIU) as well.
Any employee, former employee or beneficiary who does not wish to be represented by Davies is free to opt-out by signing and e-mailing, faxing or mailing the opt-out letter to:
CSERc/o Davies Ward Phillips & Vineberg
44th Floor
1 First Canadian Place
Toronto ON M5X 1B1
Canada
Fax: 416.863.0871
E-mail: FPemployees@dwpv.com
Please click here for a PDF version of the opt-out letter.
The Claims Process
The following claims were submitted to the monitor on November 6, 2009.
Supplemental Employee Retirement Plans (SERPs)
In a letter from the Company to SERP recipients dated June 18, 2009, the Company stated that it would no longer make payments in respect of SERPs. The Company distributed a second letter dated September 1, 2009 regarding the Company's valuation of SERP claims. The CSER and Davies worked with the Company to determine the appropriate amount for SERP claims. The CSER and Davies have employed an independent actuary to review the methodology used by the Company in arriving at these SERP amounts. Davies handled the filing of SERP claims on a collective basis and for the entire claimant group.
Because Davies handled the filing of SERP claims, individuals who filed their own SERP claims have received Notices of Disallowance for their claims. If you have any questions regarding your Notice of Disallowance or the quantum of the claim filed on your behalf, please contact us.
We are still waiting to hear back from the monitor as to whether the claims will be allowed.
Defined Benefit Pension Plans
The CSER and Davies also worked with the Company and relevant pension regulators to determine the appropriate amount for claims relating to the defined benefit pension plans. Davies employed an independent actuary to assist in calculations relating to the defined benefit pension plans. Davies handled the filing of defined benefit pension claims on a collective basis and for the entire claimant group. Group claims were submitted for both the hourly and salaried plans for New Brunswick and Quebec.
The monitor has disallowed the group claims submitted by Davies for the Defined Benefit Pension Plans for employees and retirees who are or were unionized. These claims were disallowed on the basis that other groups, such as the Communications, Energy and Paperworkers Union of Canada, have submitted duplicate claims. On December 23, 2009, Davies submitted dispute notices to the monitor to object to the disallowances.
The monitor has revised the group claims submitted by Davies for the Defined Benefit Pensions Plans for employees and retirees who are or were non-union employees and retirees. These revised claims were accepted by the monitor on a contingent basis.
Deferred Compensation Plan
In a letter from the Company to Deferred Compensation Plan recipients dated June 18, 2009, the Company stated that it would no longer make payments in respect of this plan. The Company has provided Davies with the account balances. Davies understands that affected participants have individually filed their claims in relation to the Deferred Compensation Plan. Anyone requiring further assistance with this matter should contact Davies directly.
Health and Welfare Trusts
The Company distributed letters stating that the Health and Welfare Trusts are no longer funded and their anticipated termination dates. The CSER and Davies worked with the Company to determine the appropriate amount for claims relating to the retiree Health and Welfare Trusts. Davies employed an independent actuary to assist in calculations relating to the retiree Health and Welfare claims as well. Davies handled the filing of retiree Health and Welfare claims on a collective basis and for the entire claimant group.
Bonuses, Termination and Severance Pay
The CSER and Davies have worked and continue to work with the Company in order to generate a list of affected individuals and to determine the appropriate amounts for claims or contingent claims relating to their termination and severance pay. The CSER and Davies will continue to notify their representative groups of any new developments in this area.
On December 23, 2009, Davies submitted claims to the monitor for termination and severance pay, based on the lists of affected individuals provided by the Company. Affected individuals who received Notices of Disallowance for their termination and severance claims before this date do not need to submit dispute notices, as Davies has filed new claims. Subsequently, Davies also filed a group bonus claim for the Thurso employees.
Affected individuals were personally responsible for filing any claims and dispute notices relating to bonuses and vacation pay. Those submitting such claims should provide the monitor with any evidence that bonuses were paid in previous years, as well as evidence that the financial targets for the relevant period were met.
The monitor has disallowed the group claims for bonus payments submitted by Davies. On February 17, 2010, Davies submitted dispute notices to the monitor to object to the disallowance.
Contact Information
Davies is in the process of compiling a list of e-mail addresses of members of the groups it is representing. This will allow Davies to communicate with these members and keep them informed on an ongoing basis. Please send your e-mail address to FPemployees@dwpv.com. If you do not have an e-mail address of your own, you may provide the e-mail address of a family member or friend with whom you communicate on a regular basis. Davies will continue to communicate with members who do not provide an e-mail address by regular mail, as appropriate.
Davies will continue to update this website with new information as it becomes available.
If any employee, former employee or beneficiary has any questions, an e-mail should be sent to FPemployees@dwpv.com or a member of the Davies' team can be contacted at 1.877.782.0299 (toll free).
Individuals seeking information regarding the value of the claims that Davies has submitted on their behalves should contact Davies by email at FPemployees@dwpv.com or by calling our toll free hotline at 1.877.782.0299.
For information about the CCAA proceedings, the claims process, the status of the Fraser Papers restructuring and to access court documents and the Monitor's reports, please visit the Monitor's website at www.pwc.com/car-fraserpapers.